According to OMB, in the seven fiscal years since the discretionary spending limits were instituted, approximately $891 billion of spending has been provided under these adjustments.. As a result, these types of spending are referred to as "adjustments.". As of the date of this report, the Cures Act is unique in providing a statutory exemption of this kind.. Five other adjustments are capped and can be used for specific programs or purposes.. For example, the Financial Services and General Government appropriations act for FY2018 included this provision:
If, for fiscal year 2018, new budget authority provided in appropriations Acts exceeds the discretionary spending limit for any category set forth in section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 due to estimating differences with the Congressional Budget Office, an adjustment to the discretionary spending limit in such category for fiscal year 2018 shall be made by the Director of the Office of Management and Budget in the amount of the excess but the total of all such adjustments shall not exceed 0.2 percent of the sum of the adjusted discretionary spending limits for all categories for that fiscal year.. In addition to the adjustments specified in the BCA, the 21 st Century Cures Act (Division A of P.L.. Spending Not Subject to the Limits, Formally Referred to as Adjustments

While the categories of spending described below are often thought of as being exempt from the spending limits, in fact the enactment of such spending allows for a subsequent upward adjustment of the discretionary limits to accommodate the spending.. T he Budget Control Act of 2011 (BCA; P.L.. The law specifies that spending for certain activities, such as responding to a national emergency or fighting terrorism, will receive special budgetary treatment.. There are currently separate annual limits for defense discretionary and nondefense discretionary spending.. These adjustments are uncapped and can be used for broad purposes.. This spending is most easily thought of as being exempt from, or an exception to, the spending limits.. Two additional adjustments address potential technical issues that can arise in enforcing the spending limits.. Two adjustmentsâOverseas Contingency Operations (OCO) and emergency spendingâhave made up the vast majority of the spending.
The Budget Control Act of 2011 (BCA; P.L. 112-25 ) established statutory limits on discretionary spending for FY2012-FY2021. There are currently separate annual limits for defense discretionary and nondefense discretionary spending.
The law specifies that spending for certain activities, such as responding to a national emergency or fighting terrorism, will receive special budgetary treatment. This spending is most easily thought of as being exempt from the spending limits. Formally, however, the BCA states that the enactment of such spending allows for a subsequent upward adjustment of the discretionary limits to accommodate the spending. As a result, these types of spending are referred to as "adjustments."
Two adjustmentsâfor spending designated as emergency or for Overseas Contingency Operations (OCO)âhave made up the vast majority of the spending. (These adjustments are uncapped and can be used for broad purposes.) Five other adjustments are capped and can be used for more specific programs or purposes, and two additional adjustments address potential technical issues that can arise in enforcing the spending limits.
According to information provided by the Office of Management and Budget (the agency responsible for evaluating compliance with the discretionary spending limits), in the seven fiscal years that have concluded since the discretionary spending limits were instituted, approximately $891 billion of spending has occurred under these adjustments. Spending for OCO made up 73% of the total, and spending for emergencies made up 20%.
In addition to the adjustments specified in the BCA, the 21 st Century Cures Act (Division A of P.L. 114-255 ) provided that a limited amount of appropriations for specified purposes are to be exempt from the discretionary spending limits. As of the date of this report, the Cures Act is unique in providing an exemption of this kind.